##### 



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the quarterly period ended September 30, 2007
 or
 o
    
    Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 For the transition period from  to
 Commission File number: 0-33311
 CAMPBELL ALTERNATIVE ASSET TRUST
  Delaware
    
    52-1823554(State of Organization)
    
    (IRS Employer Identification Number)
 Baltimore, Maryland 21204
 (410) 296-3301
 þ o
  o o þ
 o þ
 30




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##### 



PagePART I  FINANCIAL INFORMATIONItem 1.
    
    Financial StatementsStatements of Financial Condition as of September 30, 2007 (Unaudited)
and December 31, 2006
    
    
    3Condensed Schedules of Investments as of September 30, 2007 (Unaudited)
and December 31, 2006
    
    
    4-5Statements of Operations for the Three Months and Nine Months Ended
September 30, 2007 and 2006 (Unaudited)
    
    
    6Statements of Cash Flows for the Nine Months Ended
September 30, 2007 and 2006 (Unaudited)
    
    
    7Statements of Changes in Unitholders Capital (Net Asset Value)
for the Nine Months Ended September 30, 2007 and 2006 (Unaudited)
    
    
    8Notes to Financial Statements (Unaudited)
    
    

9-15Item 2.
    
    Managements Discussion and Analysis of Financial Condition and
Results of Operations
    
    16-22Item 3.
    
    Quantitative and Qualitative Disclosure About Market Risk
    
    

23-28Item 4.
    
    Controls and Procedures
    
    
    28PART II  OTHER INFORMATION
    
    
    29Item 6.
    
    Exhibits and Reports on Form 8-K
    
    
    30SIGNATURESCERTIFICATIONS




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF FINANCIAL CONDITION
 September 30,
    
    
    December 31,2007
    
    
    2006ASSETSEquity in broker trading accountsCash
    
    $
    2,091,512
    
    
    $
    3,198,569United States government securities
    
    
    30,886,259
    
    
    
    30,062,122Net unrealized gain on open futures contracts
    
    
    191,239
    
    
    
    1,082,948Total equity in broker trading accounts
    
    
    33,169,010
    
    
    
    34,343,639Cash
    
    
    453,130
    
    
    
    2,904,481Options purchased, at fair value
(premiums paid, $41,228 and $29,775)
    
    
    82,489
    
    
    
    35,454United States government securities
    
    
    3,987,440
    
    
    
    4,485,165Net unrealized gain on open forward currency contracts
    
    
    829,933
    
    
    
    1,416,954Interest receivable
    
    
    11,641
    
    
    
    20,552Subscriptions receivable
    
    
    0
    
    
    
    412,864Prepaid expenses
    
    
    3,750
    
    
    
    0Total assets
    
    $
    38,537,393
    
    
    $
    43,619,109LIABILITIESAccounts payable
    
    $
    40,429
    
    
    $
    67,122Brokerage fee
    
    
    39,687
    
    
    
    50,122Options written, at fair value
(premiums received, $23,530 and $17,336)
    
    
    71,123
    
    
    
    16,186Accrued commissions and other trading fees
on open contracts
    
    
    10,606
    
    
    
    14,948Offering costs payable
    
    
    12,532
    
    
    
    15,828Redemptions payable
    
    
    133,093
    
    
    
    583,188Total liabilities
    
    
    307,470
    
    
    
    747,394UNITHOLDERS CAPITAL (Net Asset Value)Managing Owner  1,413.580 units outstanding
at September 30, 2007 and December 31, 2006
    
    
    2,331,234
    
    
    
    2,566,397Other Unitholders  21,767.744 and 22,200.336
units outstanding at September 30, 2007 and
December 31, 2006
    
    
    35,898,689
    
    
    
    40,305,318Total unitholders capital
(Net Asset Value)
    
    
    38,229,923
    
    
    
    42,871,715Total liabilities and unitholders capital
(Net Asset Value)
    
    $
    38,537,393
    
    
    $
    43,619,109
  - 3 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
CONDENSED SCHEDULE OF INVESTMENTS
 UNITED STATES GOVERNMENT SECURITIES*
 % of NetFace Value
    
    
    Maturity Date
    
    
    Description
    
    Value
    
    
    Asset Value$
    13,000,000
    
    
    
    11/01/2007
    
    
    U.S. Treasury Bills
    
    $
    12,946,827
    
    
    
    33.86
    %$
    10,000,000
    
    
    
    11/29/2007
    
    
    U.S. Treasury Bills
    
    
    9,942,639
    
    
    
    26.01
    %$
    8,000,000
    
    
    
    10/04/2007
    
    
    U.S. Treasury Bills
    
    
    7,996,793
    
    
    
    20.92
    %$
    4,000,000
    
    
    
    10/25/2007
    
    
    U.S. Treasury Bills
    
    
    3,987,440
    
    
    
    10.43
    %Total United States government securities

 (cost, including accrued
interest,  $34,873,699)
    
    $
    34,873,699
    
    
    
    91.22
    %
 LONG FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    (479
    )
    
    
    (0.00
    )%Metals
    
    
    30,469
    
    
    
    0.08
    %Stock indices
    
    
    297,717
    
    
    
    0.78
    %Short-term interest rates
    
    
    (12,665
    )
    
    
    (0.03
    )%Long-term interest rates
    
    
    (17,455
    )
    
    
    (0.05
    )%Total long futures contracts
    
    $
    297,587
    
    
    
    0.78
    %
 SHORT FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    5,873
    
    
    
    0.01
    %Metals
    
    
    (103,099
    )
    
    
    (0.27
    )%Stock indices
    
    
    (6,065
    )
    
    
    (0.01
    )%Short-term interest rates
    
    
    (1,370
    )
    
    
    (0.00
    )%Long-term interest rates
    
    
    (1,687
    )
    
    
    (0.01
    )%Total short futures contracts
    
    $
    (106,348
    )
    
    
    (0.28
    )%Total futures contracts
    
    $
    191,239
    
    
    
    0.50
    %
 FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    4,218,648
    
    
    
    11.03
    %Various short forward currency contracts
    
    
    (3,388,715
    )
    
    
    (8.86)
    %Total forward currency contracts
    
    $
    829,933
    
    
    
    2.17
    %
 PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValuePurchased options on forward currency contracts
(premiums paid  $41,228)
    
    $
    82,489
    
    
    
    0.22
    %
 WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueWritten options on forward currency contracts
(premiums received  $23,530)
    
    $
    (71,123
    )
    
    
    (0.19
    )%
 
 *
    
    - Pledged as collateral for the trading of futures, forward and options positions.  - 4 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
CONDENSED SCHEDULE OF INVESTMENTS
 UNITED
STATES GOVERNMENT SECURITIES*
 % of NetFace Value
    
    
    Maturity Date
    
    
    Description
    
    Value
    
    
    Asset Value$
    13,000,000
    
    
    
    02/01/2007
    
    
    U.S. Treasury Bills
    
    $
    12,944,980
    
    
    
    30.19
    %$
    10,000,000
    
    
    
    03/01/2007
    
    
    U.S. Treasury Bills
    
    
    9,920,022
    
    
    
    23.14
    %$
    7,200,000
    
    
    
    01/04/2007
    
    
    U.S. Treasury Bills
    
    
    7,197,120
    
    
    
    16.79
    %$
    4,500,000
    
    
    
    01/25/2007
    
    
    U.S. Treasury Bills
    
    
    4,485,165
    
    
    
    10.46
    %Total United States government securities
(cost, including accrued interest,  $34,547,287)
    
    $
    34,547,287
    
    
    
    80.58
    %
 LONG FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    (405,662
    )
    
    
    (0.94
    )%Metals
    
    
    (68,317
    )
    
    
    (0.16
    )%Stock indices
    
    
    451,110
    
    
    
    1.05
    %Long-term interest rates
    
    
    (47,968
    )
    
    
    (0.11
    )%Total long futures contracts
    
    $
    (70,837
    )
    
    
    (0.16
    )%
 SHORT FUTURES CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueEnergy
    
    $
    8,960
    
    
    
    0.02
    %Metals
    
    
    35,389
    
    
    
    0.08
    %Short-term interest rates
    
    
    347,969
    
    
    
    0.81
    %Long-term interest rates
    
    
    761,467
    
    
    
    1.78
    %Total short futures contracts
    
    $
    1,153,785
    
    
    
    2.69
    %Total futures contracts
    
    $
    1,082,948
    
    
    
    2.53
    %
 FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueVarious long forward currency contracts
    
    $
    (792,936
    )
    
    
    (1.84
    )%Various short forward currency contracts
    
    
    2,209,890
    
    
    
    5.15
    %Total forward currency contracts
    
    $
    1,416,954
    
    
    
    3.31
    %
 PURCHASED OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValuePurchased options on forward currency contracts
(premiums paid  $29,775)
    
    $
    35,454
    
    
    
    0.08
    %
 WRITTEN OPTIONS ON FORWARD CURRENCY CONTRACTS
 % of NetDescription
    
    Value
    
    
    Asset ValueWritten options on forward currency contracts
(premiums received  $17,336)
    
    $
    (16,186
    )
    
    
    (0.03
    )%
 
 *
    
    - Pledged as collateral for the trading of futures, forward and options positions.  - 5 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF OPERATIONS
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006TRADING GAINS (LOSSES)Futures trading gains (losses)Realized
    
    $
    (3,471,839
    )
    
    $
    (979,207
    )
    
    $
    (174,622
    )
    
    $
    1,175,937Change in unrealized
    
    
    (644,029
    )
    
    
    (905,732
    )
    
    
    (891,709
    )
    
    
    (311,763
    )Brokerage commissions
    
    
    (11,331
    )
    
    
    (13,333
    )
    
    
    (57,369
    )
    
    
    (54,007
    )Net gain (loss) from futures trading
    
    
    (4,127,199
    )
    
    
    (1,898,272
    )
    
    
    (1,123,700
    )
    
    
    810,167Forward currency and options on forward
currency trading gains (losses)Realized
    
    
    (1,884,766
    )
    
    
    182,206
    
    
    
    (2,100,846
    )
    
    
    (3,540,951
    )Change in unrealized
    
    
    (419,780
    )
    
    
    492,986
    
    
    
    (600,182
    )
    
    
    1,453,179Brokerage commissions
    
    
    (4,975
    )
    
    
    (6,297
    )
    
    
    (24,214
    )
    
    
    (15,039
    )Net gain (loss) from forward
currency and options on forward
currency trading
    
    
    (2,309,521
    )
    
    
    668,895
    
    
    
    (2,725,242
    )
    
    
    (2,102,811
    )Total net trading losses
    
    
    (6,436,720
    )
    
    
    (1,229,377
    )
    
    
    (3,848,942
    )
    
    
    (1,292,644
    )INTEREST INCOME OF EXPENSESIncomeInterest income
    
    
    469,193
    
    
    
    505,280
    
    
    
    1,491,476
    
    
    
    1,426,339ExpensesBrokerage fee
    
    
    274,967
    
    
    
    287,880
    
    
    
    881,460
    
    
    
    878,111Performance fee
    
    
    0
    
    
    
    0
    
    
    
    270,167
    
    
    
    370,369Operating expenses
    
    
    20,735
    
    
    
    22,104
    
    
    
    74,417
    
    
    
    80,747Total expenses
    
    
    295,702
    
    
    
    309,984
    
    
    
    1,226,044
    
    
    
    1,329,227Interest income net of expenses
    
    
    173,491
    
    
    
    195,296
    
    
    
    265,432
    
    
    
    97,112NET LOSS
    
    $
    (6,263,229
    )
    
    $
    (1,034,081
    )
    
    $
    (3,583,510
    )
    
    $
    (1,195,532
    )NET LOSS PER MANAGING
OWNER AND OTHER UNITHOLDERS
UNIT(based on weighted average number
of units outstanding during the period)
    
    $
    (270.61
    )
    
    $
    (42.70
    )
    
    $
    (153.63
    )
    
    $
    (49.65
    )DECREASE IN NET ASSET
VALUE PER MANAGING OWNER
AND OTHER UNITHOLDERS UNIT
    
    $
    (274.75
    )
    
    $
    (46.52
    )
    
    $
    (166.36
    )
    
    $
    (59.60
    )
  - 6 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF CASH FLOWS
 Nine Months EndedSeptember 30,2007
    
    
    2006Cash flows from (for) operating activitiesNet loss
    
    $
    (3,583,510
    )
    
    $
    (1,195,532
    )Adjustments to reconcile net loss to net cash
from (for) operating activitiesNet change in unrealized
    
    
    1,491,891
    
    
    
    (1,141,416
    )Change in option premiums paid
    
    
    (11,453
    )
    
    
    0Change in option premiums received
    
    
    6,194
    
    
    
    5,568Decrease in restricted cash
    
    
    0
    
    
    
    (2,050,137
    )Increase (decrease) in accounts payable
and accrued expenses
    
    
    (41,470
    )
    
    
    (80,175
    )Increase in prepaid expense
    
    
    (3,750
    )
    
    
    0(Increase) decrease in interest receivable
    
    
    8,911
    
    
    
    1,907Net purchases of investments in United States
government securities
    
    
    (326,411
    )
    
    
    (227,171
    )Net cash for operating activities
    
    
    (2,459,598
    )
    
    
    (4,686,956
    )Cash flows from (for) financing activitiesAddition of units
    
    
    2,079,679
    
    
    
    1,868,414Redemption of units
    
    
    (2,896,836
    )
    
    
    (863,708
    )Offering costs paid
    
    
    (281,653
    )
    
    
    (278,508
    )Net cash from (for) financing activities
    
    
    (1,098,810
    )
    
    
    726,198Net decrease in cash
    
    
    (3,558,408
    )
    
    
    (3,960,758
    )CashBeginning of period
    
    
    6,103,050
    
    
    
    9,976,310End of period
    
    $
    2,544,642
    
    
    $
    6,015,552End of period cash consists of:Cash in broker trading accounts
    
    $
    2,091,512
    
    
    $
    2,929,806Cash
    
    
    453,130
    
    
    
    3,085,746Total end of period cash
    
    $
    2,544,642
    
    
    $
    6,015,552
  - 7 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
STATEMENTS OF CHANGES IN UNITHOLDERS CAPITAL (NET ASSET VALUE)
 Unitholders CapitalManaging Owner
    
    
    Other Unitholders
    
    
    TotalUnits
    
    
    Amount
    
    
    Units
    
    
    Amount
    
    
    Units
    
    
    AmountNine Months Ended
September 30, 2007Balances at
December 31, 2006
    
    
    1,413.580
    
    
    $
    2,566,397
    
    
    
    22,200.336
    
    
    $
    40,305,318
    
    
    
    23,613.916
    
    
    $
    42,871,715Net loss for the nine months
ended September 30, 2007
    
    
    
    
    
    
    (218,295
    )
    
    
    
    
    
    
    (3,365,215
    )
    
    
    
    
    
    
    (3,583,510
    )Additions
    
    
    0.000
    
    
    
    0
    
    
    
    936.688
    
    
    
    1,666,815
    
    
    
    936.688
    
    
    
    1,666,815Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (1,369.280
    )
    
    
    (2,446,741
    )
    
    
    (1,369.280
    )
    
    
    (2,446,741
    )Offering costs
    

    
    
    
    

(16,868

    )
    
    
    
    
    
    
    (261,488
    )
    
    
    
    
    
    
    (278,356
    )Balances at
September 30, 2007
    
    
    1,413.580
    
    
    $
    2,331,234
    
    
    
    21,767.744
    
    
    $
    35,898,689
    
    
    
    23,181.324
    
    
    $
    38,229,923Nine Months Ended
September 30, 2006Balances at
December 31, 2005
    
    
    1,413.580
    
    
    $
    2,391,693
    
    
    
    22,143.118
    
    
    $
    37,464,774
    
    
    
    23,556.698
    
    
    $
    39,856,467Net loss for the nine months
ended September 30, 2006
    
    
    
    
    
    
    (67,969
    )
    
    
    
    
    
    
    (1,127,563
    )
    
    
    
    
    
    
    (1,195,532
    )Additions
    
    
    0.000
    
    
    
    0
    
    
    
    1,087.352
    
    
    
    1,868,414
    
    
    
    1,087.352
    
    
    
    1,868,414Redemptions
    
    
    0.000
    
    
    
    0
    
    
    
    (423.096
    )
    
    
    (715,281
    )
    
    
    (423.096
    )
    
    
    (715,281
    )Offering costs
    
    
    
    
    

    (16,281

    )
    
    
    
    
    
    
    (261,018
    )
    
    
    
    
    
    
    (277,299
    )Balances at
September 30, 2006
    
    
    1,413.580
    
    
    $
    2,307,443
    
    
    
    22,807.374
    
    
    $
    37,229,326
    
    
    
    24,220.954
    
    
    $
    39,536,769
 Net Asset Value per Managing Owner and Other Unitholders UnitSeptember 30,
    
    
    December 31,
    
    
    September 30,
    
    
    December 31,2007
    
    
    2006
    
    
    2006
    
    
    2005$
    1,649.17
    
    
    $
    1,815.53
    
    
    $
    1,632.34
    
    
    $
    1,691.94
  - 8 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS
 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 A.
    
    General Description of the TrustCampbell Alternative Asset Trust (the Trust) is a Delaware statutory trust which
operates as a commodity investment pool. The Trust was formed on May 3, 2000 and
commenced trading on October 1, 2001. The Trust engages in the speculative trading
of futures contracts, forward currency contracts and options on forward currency
contracts.As of December 31, 2002, units are no longer offered to the public, but are offered
exclusively for sale to the Campbell & Company, Inc. 401(K) Plan (the 401(K) Plan).
At September 30, 2007 and December 31, 2006, the 401(K) Plan held approximately 57%
and 52% of the Trusts outstanding units, respectively.B.
    
    RegulationAs a registrant with the Securities and Exchange Commission, the Trust is subject to
the regulatory requirements under the Securities Act of 1933 and the Securities
Exchange Act of 1934. As a commodity investment pool, the Trust is subject to the
regulations of the Commodity Futures Trading Commission, an agency of the United
States (U.S.) government which regulates most aspects of the commodity futures
industry; rules of the National Futures Association, an industry self-regulatory
organization; and the requirements of the various commodity exchanges where the Trust
executes transactions. Additionally, the Trust is subject to the requirements of
futures commission merchants (brokers) and interbank market makers through which the
Trust trades.C.
    
    Method of ReportingThe Trusts financial statements are presented in accordance with accounting
principles generally accepted in the United States of America, which may require the
use of certain estimates made by the Trusts management. Actual results may differ
from these estimates. Investment transactions are accounted for on the trade date.
Gains or losses are realized when contracts are liquidated. Unrealized gains and
losses on open contracts (the difference between contract trade price and market
price) are reported in the statement of financial condition as a net gain or loss, as
there exists a right of offset of unrealized gains or losses in accordance with
Financial Accounting Standards Board Interpretation No. 39  Offsetting of Amounts
Related to Certain Contracts. The market value of futures (exchange-traded)
contracts is determined by the various futures exchanges, and reflects the settlement
price for each contract as of the close of the last business day of the reporting
period. Beginning July 1, 2006, the market value of forward currency (non-exchange
traded) contracts is extrapolated on a forward basis from the spot prices quoted as
of 3:00 P.M. (E.T.) of the last business day of the reporting period or based on the
market value of its exchange-traded equivalent. Prior to July 1, 2006, the market
value of forward currency (non-exchange traded) contracts was extrapolated on a
forward basis from the spot prices quoted as of 5:00 P.M. (E.T.) of the last business
day of the reporting period or based on the market value of its exchange-traded
equivalent.
 - 9 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED)
 C.
    
    Method of Reporting (Continued)The market value of option (non-exchange traded) contracts is calculated by applying
an industry-standard adaptation of the Black-Scholes options valuation model to
foreign currency options, using as input, the spot prices, interest rates and option
implied volatilities quoted as of 3:00 P.M. (E.T.) on the last business day of the
reporting period. Any change in net unrealized gain or loss from the preceding period
is reported in the statement of operations.When the Trust writes an option, an amount equal to the premium received by the Trust
is reflected as an asset and an equivalent liability. The amount of the liability is
subsequently marked-to-market to reflect the current market value of option written.
Brokerage commissions include other trading fees and are charged to expense when
contracts are opened. United States government securities are stated at cost plus
accrued interest, which approximates market value.For purposes of both financial reporting and calculation of redemption value, Net
Asset Value per unit is calculated by dividing Net Asset Value by the number of units
outstanding.D.
    
    Income TaxesThe Trust prepares calendar year U.S. and applicable state information tax returns
and reports to the unitholders their allocable shares of the Trusts income, expenses
and trading gains or losses. No provision for income taxes has been made in the
accompanying financial statements as each unitholder is individually responsible for
reporting income or loss based on such unitholders respective share of the Trusts
income and expenses as reported for income tax purposes.E.
    
    Offering CostsCampbell & Company, Inc. (Campbell & Company) has incurred all costs in connection
with the initial and continuous offering of units of the Trust (offering costs).
Offering costs are charged to the Trust at a monthly rate of 1/12 of 0.9% (0.9%
annualized) of the Trusts month-end net asset value (as defined in the Amended and
Restated Declaration of Trust and Trust Agreement) until such amounts are fully
reimbursed. Such amounts are charged directly to unitholders capital. The Trust is
only liable for payment of offering costs on a monthly basis. At September 30, 2007
and December 31, 2006, the Trust reflects a liability in the statement of financial
condition for offering costs payable to Campbell & Company of $12,532 and $15,828,
respectively.The offering costs for which Campbell & Company are being reimbursed relate to the
offering of units of the Trust to all unitholders except the 401(K) Plan. Therefore,
Campbell & Company rebates to the 401(K) Plan the offering costs charged to the
401(K) Plan. All such rebates are made by issuing additional units to the 401(K)
Plan.If the Trust terminates prior to completion of payment to Campbell & Company for the
unreimbursed offering costs incurred through the date of such termination, Campbell &
Company will not be entitled to any additional payments, and the Trust will have no
further obligation to Campbell & Company. At September 30, 2007 and December 31,
2006, the amount of unreimbursed offering costs incurred by Campbell & Company is
$279,975 and $403,225, respectively.
 - 10 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED)
 F.
    
    Foreign Currency TransactionsThe Trusts functional currency is the U.S. dollar; however, it transacts business in
currencies other than the U.S. dollar. Assets and liabilities denominated in
currencies other than the U.S. dollar are translated into U.S. dollars at the rates
in effect at the date of the statement of financial condition. Income and expense
items denominated in currencies other than the U.S. dollar are translated into U.S.
dollars at the rates in effect during the period. Gains and losses resulting from
the translation to U.S. dollars are reported in income.G.
    
    Recently Issued Accounting PronouncementsIn July 2006, the Financial Accounting Standards Board (FASB) issued
Interpretation No. 48 (FIN 48) entitled Accounting For Uncertainty in
Income Taxes  an interpretation of FASB Statement No. 109. FIN 48
prescribes the minimum recognition threshold a tax position must meet
in connection with accounting for uncertainties in income tax
positions taken or expected to be taken by an entity before being
measured and recognized in the financial statements. Adoption of FIN
48 is required for fiscal years beginning after December 15, 2006.
The implementation of FIN 48 had no material impact on the Trusts
financial statements.In September 2006, the FASB issued Statement of Financial Accounting Standards No.
157, Fair Value Measurements (FAS 157). FAS 157 defines fair value, establishes a
framework for measuring fair value in accounting principles generally accepted in the
United States of America, and expands disclosures about fair value measurements.
While FAS 157 does not require any new fair value measurements, for some entities,
the application of FAS 157 may change current practice. FAS 157 is effective for
financial statements issued for fiscal years beginning after November 15, 2007, and
interim periods within those fiscal years. The implementation of FAS 157 is not
expected to have a material impact on the Trusts financial statements.H.
    
ReclassificationCertain amounts in the 2006 financial statements were
reclassified to conform with the 2007 presentation.
 MANAGING OWNER AND COMMODITY TRADING ADVISOR
   - 11 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 MANAGING OWNER AND COMMODITY TRADING ADVISOR (CONTINUED)
   TRUSTEE
  DEPOSITS WITH BROKER
  OPERATING EXPENSES
  SUBSCRIPTIONS, DISTRIBUTIONS AND REDEMPTIONS
   TRADING ACTIVITIES AND RELATED RISKS
  - 12 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)
       Forward Currency and OptionsFutures Contracts
    
    
    on Forward Currency Contracts(exchange traded)
    
    
    (non-exchange traded)September 30,
    
    
    December 31,
    
    
    September 30,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Gross unrealized gains
    
    $
    370,771
    
    
    $
    1,673,274
    
    
    $
    7,339,527
    
    
    $
    2,735,365Gross unrealized losses
    
    
    (179,532
    )
    
    
    (590,326
    )
    
    
    (6,515,926
    )
    
    
    (1,311,582
    )Net unrealized gain
    
    $
    191,239
    
    
    $
    1,082,948
    
    
    $
    823,601
    
    
    $
    1,423,783
 - 13 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 TRADING ACTIVITIES AND RELATED RISKS (CONTINUED)
   INDEMNIFICATIONS
  INTERIM FINANCIAL STATEMENTS
  - 14 -




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##### 



CAMPBELL ALTERNATIVE ASSET TRUST
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
 FINANCIAL HIGHLIGHTS
  Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2007
    
    
    2006
    
    
    2007
    
    
    2006(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)Per Unit Performance(for a unit outstanding throughout the entire period)Net asset value per unit at beginning of period
    
    $
    1,923.92
    
    
    $
    1,678.86
    
    
    $
    1,815.53
    
    
    $
    1,691.94Income (loss) from operations:Total trading losses (1)
    
    
    (278.50
    )
    
    
    (50.83
    )
    
    
    (165.81
    )
    
    
    (52.11
    )Interest income net of expenses (1)
    
    
    7.50
    
    
    
    8.06
    
    
    
    11.38
    
    
    
    4.03Total loss from operations
    
    
    (271.00
    )
    
    
    (42.77
    )
    
    
    (154.43
    )
    
    
    (48.08
    )Offering costs (1)
    
    
    (3.75
    )
    
    
    (3.75
    )
    
    
    (11.93
    )
    
    
    (11.52
    )Net asset value per unit at end of period
    
    $
    1,649.17
    
    
    $
    1,632.34
    
    
    $
    1,649.17
    
    
    $
    1,632.34Total Return(3)
    
    
    (14.28
    )%
    
    
    (2.77
    )%
    
    
    (9.16
    )%
    
    
    (3.52
    )%Supplemental DataRatios to average net asset value:Expenses prior to performance fee (4)
    
    
    2.96
    %
    
    
    3.07
    %
    
    
    3.10
    %
    
    
    3.13
    %Performance fee (3)
    
    
    0.00
    %
    
    
    0.00
    %
    
    
    0.66
    %
    
    
    0.91
    %Total expenses
    
    
    2.96
    %
    
    
    3.07
    %
    
    
    3.76
    %
    
    
    4.04
    %Interest income net of expenses (2), (4), (5)
    
    
    1.73
    %
    
    
    1.94
    %
    
    
    1.73
    %
    
    
    1.52
    %
 Total returns are calculated based on the change in value of a unit during the period. An
individual unitholders total returns and ratios may vary from the above total returns and
ratios based on the timing of additions and redemptions.
 
 (1)
    
    Interest income net of expenses per unit and offering costs per unit are
calculated by dividing the interest income net of expenses and offering costs by the
average number of units outstanding during the period. Total trading losses is a
balancing amount necessary to reconcile the change in net asset value per unit with
the other per unit information.(2)
    
    Excludes performance fee.(3)
    
    Not annualized.(4)
    
    Annualized.(5
    
    Interest income net of expenses is shown as a positive percentage when
interest income exceeds expenses excluding the performance fee for the period. 
 - 15 -




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##### 



Item 2.
    
    Managements Discussion and Analysis of Financial Condition and
Results of Operations
   401(K) Plan.
        - 16 -




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##### 



i.e.
   Results of Operations
  2007
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    0.45
    %Stock Indices
    
    
    (0.37
    )Metals
    
    
    (0.80
    )Energy
    
    
    (1.55
    )Currencies
    
    
    (6.66
    )(8.93
    )%
 - 17 -




---



##### 



- 18 -




---



##### 



- 19 -




---



##### 



2006
  Sector
    
    % Gain (Loss)Interest Rates
    
    
    2.57
    %Metals
    
    
    2.16Stock Indices
    
    
    0.95Energy
    
    
    0.90Currencies
    
    
    (6.54
    )0.04
    %
    - 20 -




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##### 



- 21 -




---



##### 



Off-Balance Sheet Risk
    Disclosures About Certain Trading Activities that Include Non-Exchange Traded Contracts
Accounted for at Fair Value
  - 22 -




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##### 



Item 3. Quantitative and Qualitative Disclosures About Market Risk
 Introduction
 Past Results Not Necessarily Indicative of Future Performance
    Standard of Materiality
  Quantifying the Trusts Trading Value at Risk
 Quantitative Forward-Looking Statements
 The following quantitative disclosures regarding the Trusts market risk exposures
contain forward-looking statements within the meaning of the safe harbor from civil
liability provided for such statements by the Private Securities Litigation Reform Act of 1995
(set forth in Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934). All quantitative disclosures in this section are deemed to be
forward-looking statements for purposes of the safe harbor, except for statements of
historical.
  - 23 -




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##### 



The Trusts Trading Value at Risk in Different Market Sectors
  September 30, 2007TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Currencies
    
    
    1.40
    %
    
    
    (6.66
    )%Interest Rates
    
    
    0.99
    %
    
    
    0.45
    %Stock Indices
    
    
    0.80
    %
    
    
    (0.37
    )%Energy
    
    
    0.10
    %
    
    
    (1.55
    )%Metals
    
    
    0.09
    %
    
    
    (0.80
    )%Aggregate/Total
    
    
    2.66
    %
    
    
    (8.93
    )%
 - 24 -




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##### 



*
    
    -The VaR for a sector represents the one day downside risk for the aggregate exposures
associated with this sector.  The aggregate VaR represents the VaR of the Trusts open
positions across all market sectors, and is less than the sum of the VaRs for all such market
sectors due to the diversification benefit across asset classes.**
    
    -Of the return for the nine months ended September 30, 2007, approximately 8.93% was due
to trading losses (before commissions) and approximately 3.85% due to brokerage fees,
management fees, performance fees and operating and offering costs borne by the Trust offset
by approximately 3.62% due to interest income giving a net return of (9.16)%. December 31, 2006TradingMarket Sector
    
    Value at Risk*
    
    Gain/(Loss)**Stock Indices
    
    
    0.75
    %
    
    
    6.98
    %Currencies
    
    
    0.70
    %
    
    
    2.22
    %Interest Rates
    
    
    0.59
    %
    
    
    3.07
    %Energy
    
    
    0.39
    %
    
    
    (6.58
    )%Metals
    
    
    0.17
    %
    
    
    2.07
    %Aggregate/Total
    
    
    1.42
    %
    
    
    7.76
    %
 
 *
    
    -The VaR for a sector represents the one day downside risk for the aggregate exposures
associated with this sector.  The aggregate VaR represents the VaR of the Trusts open
positions across all market sectors, and is less than the sum of the VaRs for all such market
sectors due to the diversification benefit across asset classes.**
    
    -Of the return for the year ended December 31, 2006, approximately 7.76% was due to
trading gains (before commissions), approximately 4.70% was due interest income offset by
approximately 5.16% due to brokerage fees, performance fees and operating and offering costs
borne by the Trust giving a net return of 7.30%. Material Limitations of Value at Risk as an Assessment of Market Risk
  1)
    
    Past changes in market risk factors will not always result in accurate predictions of
the distributions and correlations of future market movements;2)
    
    Changes in portfolio value caused by market movements may differ from those of the VaR
model;3)
    
    VaR results reflect past trading positions while future risk depends on future
positions;4)
    
    VaR using a one day time horizon does not fully capture the market risk of positions
that cannot be liquidated or hedged within one day; and5)
    
    The historical market risk factor data for VaR estimation may provide only limited
insight into losses that could be incurred under certain unusual market movements.
 - 25 -




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##### 



Non-Trading Risk
  Qualitative Disclosures Regarding Primary Trading Risk Exposures
 The following qualitative disclosures regarding the Trusts market risk exposures 
except for (i) those disclosures that are statements of historical fact and (ii) the
descriptions of how the Trust manages its primary market risk exposures  constitute
forward-looking statements within the meaning of Section 27A of the Securities Act and Section
21E of the Securities Exchange Act. The Trusts primary market risk exposures as well as the
strategies used and to be used by Campbell & Company for managing such exposures are subject
to numerous uncertainties, contingencies and risks, any one of which could cause the actual
results of the Trusts risk controls to differ materially from the objectives of such
strategies. Government interventions, defaults and expropriations, illiquid markets, the
emergence of dominant fundamental factors, political upheavals, changes in historical price
relationships, an influx of new market participants, increased regulation and many other
factors could result in material losses as well as in material changes to the risk exposures
and the risk management strategies of the Trust. There can be no assurance that the Trusts
current market exposure and/or risk management strategies will not change materially or that
any such strategies will be effective in either the short- or long-term. Investors must be
prepared to lose all or substantially all of their investment in the Trust.
  Currencies
 i.e.,
 - 26 -




---



##### 



Interest Rates
  Stock Indices
  Energy
  Metals
  Qualitative Disclosures Regarding Non-Trading Risk Exposure
  Foreign Currency Balances
  - 27 -




---



##### 



Treasury Bill Positions
  Qualitative Disclosures Regarding Means of Managing Risk Exposure
   General
  Item 4. Controls and Procedures
  - 28 -




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##### 



PART II-OTHER INFORMATION
 Item 1. Legal Proceedings.
  Item 2. Changes in Securities and Use of Proceeds
  Item 3. Defaults Upon Senior Securities
  Item 4. Submissions of Matters to a vote of Security Holders.
  Item 5. Other Information
  Item 6. Exhibits and Reports on Form 8-K.
 (a)
    
    Exhibits
 ExhibitNumber
    
    Description of Document31.01
    
    
    Certification of Theresa D. Becks, Chief Executive Officer,
pursuant to Rules 13a-14 and 15d-14 of the Securites Exchange Act of 1934.31.02
    
    
    Certification of Gregory T. Donovan, Senior Vice President of
Accounting and Finance, pursuant to Rules 13a-14 and 15d-14 of the Securites
Exchange Act of 1934.32.01
    
    
    Certification of Theresa D. Becks, Chief Executive Officer,
pursuant to 18 U.S.C. Section 1350, as enacted by Section 906 of The
Sarbanes-Oxley Act of 2002.32.02
    
    
    Certification of Gregory T. Donovan, Senior Vice President of
Accounting and Finance, pursuant to 18 U.S.C. Section 1350, as enacted by
Section 906 of The Sarbanes-Oxley Act of 2002.
 (b)
    
    Reports of Form 8-KNone
 - 29 -




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##### 



SIGNATURES
  CAMPBELL ALTERNATIVE ASSET TRUST
(Registrant)By:
    
    Campbell & Company, Inc.Managing OwnerDate: November 14, 2007
    
    
    
    By:
    
    /s/ Theresa D. BecksTheresa D. BecksChief Executive Officer
 - 30 -




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##### 



EXHIBIT INDEX
 PageExhibit Number
    
    Description of Document
    
    Number31.01
    
    
    Certification by Chief Executive Officer
    
    E 2 - E 331.02
    
    
    Certification by Senior Vice President of Accounting and Finance
    

E
4 - E 532.01
    
    
    Certification by Chief Executive Officer
    
    E 632.02
    
    
    Certification by Senior Vice President of Accounting and Finance
    
    E 7
 E 1